Does withdrawing from a Flexible ISA equate to "subscribing" to it?

maujhf

Hi,

As I understand it multiple subscriptions are allowed for 24/25 onwards however I have been desperately trying to find out whether withdrawing from a Flexible ISA equates to "subscribing" to it in the current tax year (23/24).

My situation is as follows:

I have two stocks and shares ISAs, ISA 1 and ISA 2. Both were opened in previous tax years. I have not opened any new ISAs this tax year and have not used any of this year's £20k allowance.

Earlier this tax year I withdrew £20k from ISA 2, which is a Flexible ISA. I wish to deposit this £20k back into ISA 2 and then deposit an additional £20k (i.e. this year's allowance) into ISA 1.

Would this invalidate ISA 1's ISA status? The summary page for ISA 2 on their site is indicating to me that I can deposit £40k into it for the current tax year which seems to imply that I have subscribed to it by making the withdrawal.

xylophone

The summary page for ISA 2 on their site is indicating to me that I can deposit £40k into it for the current tax year which seems to imply that I have subscribed to it by making the withdrawal.

Doesn't it mean that you can both replace the money withdrawn from the flexible ISA and subscribe £20,000 for the current tax year if you so wish (provided that you have not already subscribed your full allowance for the current tax year elsewhere)?

If you wish to subscribe your current year's allowance elsewhere you are free to do so?

surreysaver

As long as the money goes back into the same account it was taken from, within the same tax year it was withdrawn, and it is a flexible ISA, then your £20k allowance is still available for you to do whatever you want with.
Subscribing to an ISA means putting new money into it. Taking old money out, or putting old money back in, is not subscribing to an ISA

Ayr_Rage

I am sure the flexible bit only refers to one tax year, it can only go in and out in that year.

eskbanker

Ayr_Rage said:

I am sure the flexible bit only refers to one tax year, it can only go in and out in that year.

Not quite sure if I'm paraphrasing your choice of wording or saying something subtly different, but just to be clear, there's no limit to how much can be withdrawn from a flexible ISA containing money from previous years, and any replacement of those funds under the flexibility provisions must be in the same tax year as the withdrawal.  The process can be repeated as often as desired.